Gaming on OTT: Engagement boost or revenue jackpot?

New Delhi: Gaming has slowly become a stronghold in the country as the market for gaming continues to grow aggressively. The online games market in India is expected to reach Rs 147 crore in 2024 and is further expected to grow by 11.36% to Rs 203 crore by 2027. 

OTT platforms have slowly taken to gaming, as a few platforms in India have introduced games to their platforms. Despite having a collection library of content ready to consume, games have been added to these platforms to increase engagement.

Abhirup Datta, head of marketing- AVOD, ZEE5, stated, “OTT or any other content is usually one-way communication. Since it is one-way communication, the user won’t be as hooked, and the engagement will be less. This is one of the reasons why OTT players are looking into gamification of user experiences.” 

Additionally, experts believe that by integrating games, OTT platforms can diversify their content offerings and provide users with an interactive experience. The combination of traditional video content and gaming can attract a wider audience, including those who might not have initially subscribed solely for video content.

Moreover, adding games to OTT platforms can be an incentive for users to join the platforms. 

Additionally, games and their interactive nature can lead to an increase in the time spent by users on the platform. Not only that, but the gamification of experiences can also foster a sense of community among users while driving social interactions and competition, further enhancing user retention.

Furthermore, not only does adding games allow OTT platforms to retain users and increase engagement, but it also provides an additional stream of cash flow for the platforms. Several monetisation strategies are employed to capitalise on the integration of games. 

In-game advertisements can provide a revenue stream as brands seek to reach engaged and interactive audiences. Premium game subscriptions, where users pay for access to exclusive games or features, can also be an option.

Gaurav Agarwal, co-founder, Gamezop, mentioned, “Gaming has become a cornerstone of digital entertainment, with over 550 million casual gamers in India alone. Recognising this, OTT platforms are evolving to meet the entertainment demands of their users by integrating HTML5 games into their offerings. The convergence not only deepens user engagement by creating a comprehensive entertainment hub but also taps into the highly lucrative potential of ad monetisation within games.” 

Experts opined that microtransactions within games, such as purchasing virtual goods or enhancements, offer another avenue for revenue. These in-app purchases can significantly contribute to the platform’s income. Strategic partnerships with game developers for exclusive content or branded experiences can further enhance the platform’s revenue potential.

As the gaming market continues to grow, these strategies will boost revenue while enhancing the overall user experience, making the platform more attractive to a broader audience.

As per a survey conducted by Rakuten, the age group of 25-34 years at 72% followed by 35-44 years at 68% spent the most amount of time playing online games. 16-24 years at 65% follows a close third. 

Various experts stated that this group is highly tech-savvy and seeks interactive and engaging entertainment options. They are attracted to platforms that offer a variety of content, including both traditional media and interactive gaming experiences. However, deciding which games to add to a platform requires several factors to be considered.

Kaushik Das, founder and CEO, AAO NXT, said, “User preferences and feedback play a crucial role; understanding what types of games the audience enjoys helps tailor the gaming library to their tastes. Current gaming trends and popular genres are also taken into account to ensure the platform remains relevant and appealing. The potential for high engagement is a key consideration, with a focus on games that encourage social interaction, competition, and repeat play.” 

Additionally, Das emphasised that aligning games with the platform’s overall content strategy and cultural ethos ensures a cohesive user experience. Collaborations with well-known game developers and incorporating user-generated content are also strategies to keep the gaming offerings fresh.

When asked about the future of gaming on OTT platforms, multiple experts emphasised that the developments can attract a broader audience and keep users engaged for longer periods, offering both passive and interactive entertainment options. This combination caters to a wide range of user preferences and behaviours, enhancing the overall value proposition of the platform

“While audiences on OTT will be watching content and incidentally playing some hyper-casual games available on the platform, people want to engage with content, whether it be sports or non-fiction. Gamification is important since it enables interactivity and bridges the gap between celebrities and our audiences. People want to vote for a certain contestant or a storyline character, thus increasing engagement,” Datta added.

Additionally, the integration of gaming opens up numerous monetisation opportunities, including in-game purchases, advertisements, premium subscriptions, and exclusive content partnerships, which can boost a platform’s profitability and sustainability, from a revenue standpoint.

“Adding games to OTT platforms can be highly beneficial, enhancing user engagement and offering a more comprehensive entertainment experience. As technology advances, we can expect to see more sophisticated and immersive gaming experiences, such as augmented reality (AR) and virtual reality (VR) games, integrated into OTT platforms,” Das added.

Experts concluded that incorporating gaming into OTT platforms strategically aims to boost user engagement, increase revenue, and fortify platforms for future success in the ever-changing digital entertainment industry. The strategy draws in new users as well as fosters loyalty among existing ones, ensuring sustained growth and competitive advantage